(1) In the case of purchase of goods for which input tax credit has been availed of and such goods remain unsold at the closure of business or are used for any purpose, which attracts reverse tax under sub-section (7) of section 11, the entire input tax for such purchase shall be the reverse tax, if separately ascertainable.

(2) Where any portion of goods in respect of which input tax credit has been availed of and such goods remain unsold at the closure of business or are used for any purpose for which reverse tax is leviable and the quantum of reverse tax is not ascertainable then the quantum of reverse tax in relation to such portion of goods shall be calculated by applying the rate of tax applicable to such goods on the purchase value of the goods as disclosed from the immediate previous purchase bill in respect of such goods.

(3) Where a dealer who has availed of input tax credit in respect of any goods which remain unsold at the closure of his business and the business is transferred as a whole to any dealer other than a dealer paying tax under sub-section (1) of section 6, the entire input tax credit availed of in respect of the goods so transferred shall be the reverse tax.

(3A) If the goods in respect of which input tax credit has been claimed are sent as such or after being partially processed, for further processing testing, repair, re-conditioning, or any other similar purpose and are not received back within a period of ninety days the input tax credit attributable to such goods shall be reverse tax for the month in which the period of ninety days expires except where goods so sent are sold in the course of interstate trade and tax is paid on such interstate sale in Kerala or are exported out of the territory of India, after such processing, if any.

(3B). If the goods in respect of which input tax credit has been availed of are subsequently used, fully or partially, for purposes in relation to which no input tax credit is allowable under section 11, the input tax credit availed of in respect of such goods shall be reverse tax for the return period.

(4) Where a dealer is liable for the reverse tax under sub rules (1) or sub-rule (2) or sub-rule (3) or sub-rule(3A) for any return period, the sum of the reverse tax calculated under the said sub-rules shall be the reverse tax for that return period.